Bolton Land Trust
Bolton, Connecticut 06043

How to Preserve Your Land
With Help from the Bolton Land Trust

There are ways to preserve your land that address personal financial circumstances and can benefit landowners. Talking to your accountant is a very important part of deciding what preservation option is the best for you.

Also, please note that having property designated as “farm” or “forest” land under section 490 has nothing to do with any permanent preservation of your land. This designation helps keep your taxes low, but this designation can be removed at any time (with a penalty) so it offers no permanent protection for your property.

You can donate your land to the Bolton Land Trust

This benefits you because:

1. You can deduct the value of the land for income tax purposes;
2. You have the satisfaction of knowing what will become of your land in the future;
3. You can determine how the land trust will use your property (for instance, only for recreation);
4. You remove the land from your estate, thereby reducing estate taxes your heirs may owe upon your death.

You can preserve your land with a conservation easement

This benefits you because:

1. It allows you to continue to live on your property but restricts it to the uses you choose;
2. You may be able to deduct the value of the restrictions for income tax purposes;
3. You may reduce the estate taxes your heirs may owe upon your death;
4. You can specify exactly how you would like your land to be used;
5. You can still sell the land or leave it to your heirs, and the use restrictions will continue on.

You can sell your land to the Bolton Land Trust at a “bargain price”

This benefits you because:

1. You may get as much money doing this as you would selling at full price to a developer because:

1. you won’t pay a real estate commission;
2. you won’t pay state or local conveyance taxes;
3. if your property is under section 490 for tax purposes, you will not be penalized if you sell it to a land trust;
4. you can take a charitable deduction on your taxes for the amount of the “bargain price” (the amount by which the appraised value exceeds the selling price).

You can develop part of your land and preserve part of it

This benefits you because:

1. By carving out one or two building lots, you may generate enough income to be able to preserve the rest of your land.

You can leave your property to the Bolton Land Trust in your will

This benefits you because:

1. You can continue to own and use your land during your lifetime and know that it will pass to the land trust and be preserved forever;
2. The value of the land is deductible for estate tax purposes, thereby reducing the taxes your heirs may owe.

You can agree to give your property to the Bolton Land Trust when you die

This is similar to the option of leaving your property to the land trust in your will, but is different because it is a “future gift” and has different tax benefits.

This benefits you because:

1. It creates a plan for what will happen to your land when you die;
2. You may receive tax benefits for giving a gift in the future.

Please remember that everyone’s personal circumstances are different, and the tax benefits that can result from preserving your land will be different in each case. Please talk to an accountant about these different options and which would be best for you.

At any time, the directors of the land trust would be pleased to speak with any landowner about preserving land. All conversations are held strictly confidential. Please call to set up an appointment at your convenience.

Gwen Marrion, president
(860) 643-9302

Copyright © 2004 All Rights Reserved. Last update:6/17/2004